Sydney's top-end properties stand out from crowd, boosting auction clearance rate

Sydney’s prestige property market segment stood out from the crowd at weekend auctions.

In Caringbah South, a three-bedroom/four-bathroom house situated less than 50 metres from the water sold under the hammer for $5.62 million, with spirited competition from five registered bidders. Meanwhile, a six-bedroom period home in Waverton, a deceased estate, hit $4 million, and a Whale Beach 1970s “time-capsule” home with absolute water frontage sold strongly for an undisclosed amount.

The solid sales of top-end properties in different pockets of Sydney helped to modestly push up the city’s weekend auction clearance rate.

Domain Group posted a 65.7 per cent clearance rate for Saturday’s market. On the previous weekend, November 18-19, a 62.4 per cent clearance rate was recorded but once late results were counted this figure was revised down to 52.6 per cent.

At this performance rate, the market is seeing many more auctions with two bidders or less, a trend to pass-in-negotiated sales and opportunities for buyers to purchase at fair value prices.

Even so, the top end is defying expectations. That’s partly because the 60 per cent surge in Sydney house prices over the past four years has seen many home owners chalk up substantial capital gains from their existing properties. It’s a trend that is pushing more buyers into the $4 million-plus price bracket and increasing the size of the top-end buyer pool.

• Related: Click here for Saturday’s auction results
• Related: Click here for the Market Snapshot

The most expensive house reported sold at auction on the weekend was a “sun and sophistication” Port Douglas-style residence at 48 Grandview Parade, Caringbah South. With a price guide of $5 million to $5.5 million, the house was on the market at $5.48 million and sold for $5.62 million.

“The bidding opened at $5 million and it was pretty spirited between three parties,” said Abode Property selling agent Suzanne Hibberd. “We have some very happy owners.”

She said the home’s close proximity to the water and the flatness of its land contributed to the result: “It has been with the one owner for 30 years and it is one of those properties that people have always admired, so it was always going to have strong interest.”

Also a stone’s throw from the water, 147A Charles Street, Putney, a contemporary five-bedroom property on 815 square metres, sold through First National for $4.008 million. 

At Whale Beach a four-bedroom house at 145 Whale Beach Road had a guide price of $3 million. It was sold at a well-contested auction on Saturday.

Selling agent Greg Griffin, from Belle Property, said a confidentially agreement with the buyer prevented the disclosure of the sale price.

But he said the property attracted bidding from multiple parties.

“The house was in pretty poor condition but the position itself was beautiful – it has a stunning outlook,” Mr Griffin said.

“What we are experiencing at the moment is that as long as properties are priced realistically, there are still plenty of buyers for them.”

There were three registered bidders for a 1925-built six-bedroom family home at 45 Crows Nest Road, Waverton. Raine & Horne Crows Nest principal David Hill said the property was passed in at $3.905 million to a young couple with two children. The house, held by one family for 60 years, is on a 769-square metre block. After negotiations with the top bidder, it sold for $4 million.

There is no doubt that the market is softer than it was 12 months ago but it is healthy for the good properties.

Australian Bureau of Statistics data shows that the population of NSW rose 1.6 per cent last year, underpinning increased demand for extra infrastructure and housing. Australia’s population is almost 24.7 million following its fastest rise in nine years, according to the ABS. This spike is expected to boost property markets within Sydney and Melbourne, in particular.

Agents claim there is plenty of money for super-A-grade properties in prime spots and in “move-straight-in” condition. They say they get a lot of prospective buyers asking about properties before they come to market and that these buyers try to line up off-market deals so that the sought-after houses and apartments don’t come to market.

But most agents candidly admit any property that has a slight catch or negative attached to it is tougher to sell than it was last year.

On Saturday, 993 auctions were scheduled but agents only reported the results for 516 properties. Some 138 properties booked to go to auction were withdrawn, which is a high withdrawal rate.

On the same weekend last year, Sydney had a 73.7 per cent clearance rate and a much higher reporting rate.